DFCC - HNB joint venture awaiting snag clearance by SEC

By Duruthu Edirimuni Chandrasekara

The proposed DFCC - HNB joint venture investment bank is awaiting its launch by next month, subject to the Securities and Exchange Commission (SEC) clearing up a snag in the bank's regulations.

"Everything is ready for us to launch the venture. The name has been decided and registered, its structure is in place and the staff has been organised. We are waiting for an amendment by the SEC (law) to the regulations of the bank," Nihal Fonseka, CEO DFCC Bank, who is tipped to be the Chairman of the new entity, told The Sunday Times FT.

He declined to say what the amendment was about as it was too early to do so, but noted that SEC was seeking a legal opinion on the matter.

He added the venture was earlier scheduled to go live by tomorrow, but this snag has kept them waiting. " But we want to clear the issue and start operations in April," he said.

Fonseka said this Rs.500 million investment bank will carry out the amalgamated corporate finance and capital markets businesses of the two institutions and will also be the group holding company for the other related entities of the two banks including their stock brokering and primary dealership businesses.

Jayantha Perera, HNB's Head of International Banking and Business Development is slated to be the Managing Director of the new investment bank.